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NBU Comments on the Audited Financial Statements 2018 from the Largest Banks

4 June 2019

Press Release

 

Audit reports confirm credibility of information recorded by banks on financial standing, financial result and cash flow for the reporting year in line with the International Financial Reporting Standards. This was the main conclusion drawn from audit reports’ findings of financial statements as of 31 December 2018 submitted by all banks to the National Bank of Ukraine (NBU).

 

At the same time, some of 25 largest banks according to the assets share in the banking sector received a qualified opinion and a restatement. Restatement of PrivatBank was noted for the highest materiality.

 

Thus, in 2018 PrivatBank received additional information on assets value that was recognized by the bank before the nationalization for loan repayments issued to related companies with the previous shareholders of the bank. On the account of additional information on assets, the bank renewed the mentioned loans, raised allowance for such loans and reduced the carrying value of pledge on these loans by UAH 5.6 billion. Thus, total losses of the bank that equal the raised loss allowances on loans the previous holders issued to related companies increased to UAH 209.4 billion.

 

The bank’s auditor has confirmed the bank’s statements for 2018, in particular expenses on allowances.

 

At the same time, losses incurred by the bank due to allowances do not effect its day-to-day operation, since the bank has a sufficient capital cushion and complies with the statutory requirements of the NBU; the PrivatBank auditor also confirmed this fact.

 

“The NBU began processing the submitted statements and can already draw some conclusions. First, the NBU is pleased with the quality of banks’ statements. Second, the extent of losses detected after adjusting PrivatBank data confirmed by the auditor has once again proven the gravity of the problem caused by lending to companies related to previous owners,” noted Vitalii Vavryshchuk, Director of Financial Stability Department.

 

Latter on, the NBU will examine submitted statements and provide banks with comments for restatement as necessary.

 

Annex. Key indicators of the financial statements from 25 largest banks

 

No.

Bank

Financial result for 2018 confirmed by the auditor

Regulatory capital
(Annual Report)

N2*
(Annual Report)

1

Ukreximbank JSC

852,300

11,210,073

12.8

 

2.

OSCHADBANK JSC

162,239

20,144,600

13.4

 

3

CB PRIVATBANK JSC

12,798,275

30,872,000

11.5

 

4

"UKRGASBANK JSB"

768,698

5,728,036

12.1

 

5

Prominvestbank PJSC

(-3,340,240)

2,809,000

15

 

6

UКRSОTSBАNК PJSC

(-1,194,627)

2,248,596

17

 

7

Raiffeisen Bank Aval JSC

5,087,934

11,187,482

20.88

 

8

KREDOBANK JSC

509,800

1,806,165

16.88

 

9

UkrSibbank JSС

2,659,857

6,405,060

20.18

 

10

Idea Bank JSC

336,271

606,025

16.87

 

11

CREDIT AGRICOLE BANK JSC

1,462,649

4,746,765

19

 

12

ALFA BANK JSC

1,310,260

5,863,910

13.63

 

13

ING Bank Ukraine JSC

510,977

3,570,994

71.94

 

14

OTP Bank JSC

1,974,310

5,254,806

19.60

 

15

Citibank JSC

1,408,221

1,726,448

26.49

 

16

PROCREDIT BANK JSC

662,457

3,293,523

18.37

 

17

SBERBANK JSC

(-7,614,187)

4,712,044

20.5

 

18

TASCOMBANK JSC

402,029

2,354,042

16.63

 

19

Pivdеnnyi PJSC

274,489

2,366,843

12.14

 

20

FUIB JSC

2,008,508

5,282,255

16.3

 

21

MEGABANK JSC

104,801

903,537

10,5

 

22

UNIVERSAL BANK JSC

86,069

753,386

13.07

 

23

BANK CREDIT DNIPRO JSC

(-551,465)

1,034,658

13.8

 

24

VOSTOK BANK JSC

122,104

819,206

12.02

 

25

IIB JSC

64,026

461,310

19.3

 

 

N2 means bank’s compliance with the regulatory capital adequacy ratio N2 value is to be at least 10%.


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Last modification   04.06.2019